New order bookings for first quarter 2017 were $86.9 million, an increase of 18.2%, compared with $73.5 million for the first quarter last year. Sales for first quarter 2017 increased to $81.6 million, an increase of 7.7%, compared with $75.7 million for first quarter last year. Excluding an unfavorable foreign exchange impact of approximately $1.5 million, sales for first quarter 2017 would have increased by 9.6%.
“In the first quarter, our efforts over the past year started to produce the intended top-line results with new order bookings growth at 18.2%,” stated stated Dr. Simon Raab, President and Chief Executive Officer.“We continued to lay the foundation for growth by significantly increasing our salesforce, rapidly expanding the use of online demonstrations and delivering on our product drumbeat commitment by introducing our new Laser Tracker product line. Our intention to return to growth company status will only be attained by persisting in our strategy to drive sales and operating margin.”
“In early 2016, FARO initiated a broad-reaching strategic reorganization and renewal initiative to return the company to growth company status with double-digit sales growth and operating margin,” stated Dr. Raab. “We re-aligned our selling, marketing, and product development teams into five verticals: factory metrology, construction BIM-CIM, product design, public safety forensics, and 3D solutions. We re-organized our research and development activities to create a new product drumbeat delivering next generation, technically superior products in a more frequent cadence to drive a higher gross margin. We continued to aggressively expand our sales-force to accelerate growth in sales opportunities, especially in our emerging verticals with high growth potential, such as public safety forensics and product design and incurred the resulting increase to our selling and marketing expenses. We are reducing our aged demonstration and service inventory with the expected short-term impact on our gross margin. As previously discussed, we expect that by the end of second quarter we will have completed the harmonization of our primary global processes and systems to have a more efficient platform for growth and to reduce our operating costs as a percentage of sales, especially general and administrative costs.”
For more information: www.faro.com